Correlation Between Bloise Holding and Apple
Can any of the company-specific risk be diversified away by investing in both Bloise Holding and Apple at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bloise Holding and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloise Holding AG and Apple Inc, you can compare the effects of market volatilities on Bloise Holding and Apple and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bloise Holding with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloise Holding and Apple.
Diversification Opportunities for Bloise Holding and Apple
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bloise and Apple is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bloise Holding AG and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Bloise Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bloise Holding AG are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Bloise Holding i.e., Bloise Holding and Apple go up and down completely randomly.
Pair Corralation between Bloise Holding and Apple
Assuming the 90 days horizon Bloise Holding AG is expected to generate 1.74 times more return on investment than Apple. However, Bloise Holding is 1.74 times more volatile than Apple Inc. It trades about 0.13 of its potential returns per unit of risk. Apple Inc is currently generating about 0.14 per unit of risk. If you would invest 17,219 in Bloise Holding AG on September 12, 2024 and sell it today you would earn a total of 2,899 from holding Bloise Holding AG or generate 16.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloise Holding AG vs. Apple Inc
Performance |
| Timeline |
| Bloise Holding AG |
| Apple Inc |
Bloise Holding and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloise Holding and Apple
The main advantage of trading using opposite Bloise Holding and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloise Holding position performs unexpectedly, Apple can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Apple will offset losses from the drop in Apple's long position.| Bloise Holding vs. Berkshire Hathaway | Bloise Holding vs. American International Group | Bloise Holding vs. Arch Capital Group | Bloise Holding vs. Sun Life Financial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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